Big Co., Inc. is an MNC located in the U.S. Big Co. would like to estimate its weighted average cost of capital. On average, bonds issued by Big Co. yield 8 percent. Currently, T-bill rates are 2 percent. Furthermore, Big Co.’s stock has a beta of 1.3, and the return on the S&P 500 stock index is expected to be 10 percent. Big Co.’s target capital structure is 40 percent debt and 60 percent equity. If Big Co. is in the 35 percent tax bracket, what is its weighted average cost of capital?